4G LTE Investment is Set to Accelerate Throughout Latin America in
2014, Says ABI Research

April 17, 2014 09:44 AM Eastern Daylight Time

SINGAPORE--(BUSINESS WIRE)--ABI Research expects growth of 10% in mobile telecoms capital
expenditure (CapEx) in Latin America, rising to US$6.1 billion. Upgrades
and expansion of 3G WCDMA and 4G LTE coverage will result in radio
access network-related spending capturing 40% of CapEx. Investment in
small cell base stations is garnering momentum with 40% year-on-year
growth in 2014 to US$484 million.

“Mobile telecom capital expenditure in Latin America is expected to grow
rapidly in 2014 as investment in 4G LTE starts to accelerate.
Significant amounts of capital expenditure are still required to build
out 4G LTE coverage. In particular, mobile cellular CTOs are
prioritizing investment in the core network functions as Internet packet
traffic and value-added 3G and 4G services are playing an increasingly
prominent role in the telecom services of the region,” stated Jake
Saunders, VP for core forecasting at ABI Research.

ABI Research estimates population coverage stood at just 34% at the end
of 2013. This should change over the next two years as LTE subscriber
adoptions grow from 2.33 million to 23 million. There is pent-up demand
for access to Internet services in Latin America that cannot be
addressed by DSL and cable Internet services.

Examples of these investment plans include:

Telefonica Chile has been consolidating its 3G network infrastructure,
including the deployment of fiber. It plans to invest a further US$200
million over the next three years.

In Peru, Telefonica plans to invest US$250 million in LTE-related
infrastructure.

In 4Q-2013, TIM Brazil rolled out its first 150 small cells to boost
signal transmission capacity on its mobile network.

In Colombia, Avantel announced in 4Q-2013 it would invest US$250
million on the first stage of its 4G roll-out. It was awarded 30 MHz
of spectrum in June 2013.

While some of the economies in Latin America have troubled leadership
and a mixed bag of economic growth, when it comes to mobile voice and
broadband demand, the telcos are struggling to keep up.

ABI Research provides in-depth analysis and quantitative forecasting of
trends in global connectivity and other emerging technologies. From
offices in North America, Europe and Asia, ABI Research’s worldwide team
of experts advises thousands of decision makers through 70+ research and
advisory services. Est. 1990. For more information visit www.abiresearch.com,
or call +1.516.624.2500.